Huttig Building Products recorded its second consecutive quarter of record operating results as a public company in the fiscal second quarter of 2021. The distributor posted net sales of $274.4 million in the fiscal second quarter, a 28.9% increase from the second quarter of 2020, according to Huttig’s quarterly earnings report.
Huttig said the increase in net sales was largely attributable to an increase in residential construction activity as compared to the second quarter of 2020, the first quarter impacted by the coronavirus (COVID-19) pandemic. Sales and income growth in the second quarter of 2021 was moderated in comparison to the second quarter of 2020 for Huttig by previously announced restructuring activities and by the company’s 2020 product rationalization program.
Huttig said despite ongoing supply chain challenges, sales increased in all three of the company’s product classifications during the second quarter. Millwork sales increased 19.1% on a year-over-year (YOY) basis, building products sales increased 29.5% YOY, and wood product sales increased 85.9% YOY in the second quarter. Huttig said the millwork category was most significantly impacted by supply chain disruptions during the quarter.
“Our focus on strategic product category growth is working, and our results clearly demonstrate the positive impact our success is having on our financial model,” Jon Vrabely, president and CEO of Huttig, said in a prepared statement. “Despite severe supply chain disruption and labor shortages, we generated substantial gains across every facet of our financial performance including sales, profitability, and liquidity. The strong underlying fundamentals of the residential construction market, combined with the sustainable improvements we have achieved in the business, positions us very well to continue generating solid results in the future.”
The distributor’s gross margin was $55.3 million in the second quarter of 2021, compared to $38.7 million in the prior year period. As a percentage of sales, gross margin was 22.4% in the second quarter of 2021, a 180 basis point increase from the second quarter in 2020. Huttig said gross margins were favorably impacted by the company’s continued focus on non-commoditized, strategic product lines that carry higher margins.
The company reported a net income of $14.9 million in the fiscal second quarter, compared to a net income of $1.6 million during the second quarter of 2020. Huttig’s adjusted EBITDA in the second quarter was $17.4 million, an $11.7 million increase YOY.
St. Louis-based Huttig is a distributor of millwork, building materials, and wood products. The company distributes its products through 25 distribution centers serving 41 states. The company’s distribution centers sell principally to building materials dealers, national buying groups, home centers, and industrial users.
